Now is the time to take concrete steps to establish an estate plan. Don't wait another moment.

1. The basics: a trust and/or will. Consider a probate-avoidance living trust and, if you're concerned about estate taxes, a tax-saving trust. (See above. Write a will or update your old one.
2. Power of Attorney Although no one wants to think about the possibility, at some time, you might become unable to handle day-to-day financial matters or make health care decisions. If you don't prepare for this possibility, a judge may appoint someone to make these decisions for you. No one wants a court's intervention in such personal matters, so make the choice yourself — ahead of when you need it. You can choose that person yourself, and give him or her legal authority to act for you, by creating documents called durable powers of attorney. You'll need one for your financial matters and one for health care. You choose someone to act for you (called your agent or attorney-in-fact) and spell out his or her authority. You can even state that the document won't have any effect unless and until you become incapacitated. Once it's signed and notarized, it's legally valid and your mind can be at ease.
3. Directive to Physicians This legal document tells medical professionals what treatment you want in specific critical situations. The directive form custom-designed by Lynda McMaken received high praise from the Mayo Clinic, where doctors called it, “the best they'd seen.”